It’s time. Google is finally set to phase out third-party cookies by the end of this year after countless delays and postponements, setting in stone one of the biggest changes to how the marketing industry operates in decades.
Designed to appease the increasing clamour for greater web privacy, the death of third-party cookies will leave a very large vacuum to be filled for marketers, who had hitherto used them to track everything from a person’s age and gender to their web and search history.
For years now, the marketing industry has been putting in place contingency plans in anticipation of this shift. One of the most prominent alternative options to emerge is Google’s so-called ‘Privacy Sandbox’.
Enabling advertisers to gain a general understanding of a user’s web browsing patterns, the Privacy Sandbox categorises people into broad interest-based sub-categories.
It’s certainly much less precise than third-party cookies – but it does offer brands some solid help in a brave new world.
Can Google’s Privacy Sandbox fill the void left by third-party cookies?
It may be one of biggest questions, however it has left marketers divided.
Many, like OpenOcean general partner Tom Henriksson, simply do not see how the Privacy Sandbox could possibly match the accuracy and granular detail offered by third-party cookies.
“While Google’s Privacy Sandbox initiatives claim to preserve relevant advertising, the proposed technologies seem unable to match the precise targeting and measurement of third-party cookies that marketers have been used to,” he says.
“Businesses must adapt to the new privacy-focused reality by embracing and learning the emerging solutions. It remains to be seen if Google’s conversion modelling and other tools can fill the gaps.”
Crucially, it should be noted that Google’s Privacy Sandbox only operates on Chrome – which many believe to be yet another attempt to restrict competition by the tech giant.
Industry reaction to the news hasn’t been entirely negative however, with many looking forward to the innovations that the move will engender and praising the greater privacy controls that systems like the Privacy Sandbox will offer.
“I once heard third-party cookies described as the gossipy neighbour and I can’t get that out of my head,” AMV BBDO innovation lead Matt Henry remarks.
“My Chrome browser also can’t seem to get a pair of Adidas Sambas that I looked at weeks ago out of its head; the problem is I already bought the Sambas and don’t really see myself building up a collection at the moment.
“Third-party cookies don’t really make the web experience better for consumers, and in a landscape where we need to be more intentional about creating experiences that enrich the lives of our audiences, I see the removal of cookies as an accelerator.
“Google’s sandbox is an environment that represents one of these innovations.”
Henry goes on to note that whilst the Privacy Sandbox might not necessarily fill the vacuum, he fervently believes that for the consumer at least, it will “absolutely start to make web experiences better”.
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Are marketers truly ready for a cookie-less world?
Much has been made of the countless delays and deliberations around the phasing out of third-party cookies in recent years – measures which were ostensibly put in place to give marketers an optimal amount of time to adapt to these radical changes.
Let us not forget that third-party cookies on Chrome were initially meant to be phased out in early 2022. But even now the question remains – are marketers truly ready for this seismic shift?
They key to success will of course be in how innovative the industry proves to be, and as one of the leading global agencies, AMV BBDO is at the forefront of these developments.
Henry explains: “We have been deliberate about developing capabilities in three areas over the last few years: Clean rooms will help us leverage first and second party data to be able to target consumers with relevant comms.
“Contextual content allows us to respond to direct consumer interest with relevant engagement, and we are developing experiences for our clients that allow for seamless first-party data collection; helping us build active relationships with consumers.”
Striking a rather more cautious tone, Henriksson hones in on the very real issues that this shift will cause to programmatic advertising, which relies heavily on third-party cookies for effective customer targeting.
“Many marketers likely don’t feel fully prepared, despite the long lead-up. Those relying heavily on programmatic ads face real challenges. However, marketers must continue gathering as much first-party data as possible and testing new cookie-less targeting solutions.
“Though the end of third-party cookies markedly changed the landscape, the digital marketing industry is nothing if not adaptable. Identifying what works with the new tools will determine who prospers.”
After several years of dither and delay, many in the industry may face the coming changes with trepidation but various robust contingencies have already been put in place.
As a result, the next few years could be some of the most innovative the marketing industry has seen in decades.
The rise and rise of first-party data
With marketers now unable to collect third-party data, first-party data will become increasingly vital for advertisers as they look for new, less-intrusive ways to collect information on their customers’ interests and purchasing patterns.
Businesses will now need to prioritise developing genuine relationships with their consumers, as they will need to rely on users opting-in to data collection. On the face of it, this can only be a good thing – for the everyday customer any rate.
Pointing to the benefits of focusing on first-party data, Brandwith senior digital strategist Colin O’Riordan highlights how putting the customer front and centre will lead to “better understanding of customer behaviours and preferences, with the opportunity for more personalised campaigns”.
Essentially, this now means that marketers and advertisers will need to work twice as hard, finding new and engaging ways in which to persuade people to part with their all-important data.
The individual now very much has the upper hand, which will lead to increased competition and a superior quality of marketing material.
Henry says that advertisers will need to keep their eyes constantly on the ball, or quickly risk losing the interest of frustrated customers.
“First-party data is, and has been for quite some time, incredibly important. The key for us, is that we can create enough value for consumers to give us these data willingly, rather than at digital gunpoint,” he says.
“If we can offer tangible ongoing value in return for data, then we can hope to actually have a relationship with the consumer. Otherwise, they will probably go out of their way to ignore our emails and the data only becomes useful for audience building.”
So, will Google’s Privacy Sandbox really be able to fill the vacuum? The answer is probably not. But are marketers truly ready for this step-change? For many, the answer is actually yes.
Despite perfectly natural concerns over a forced shift to new ways of working, the importance that will now be placed on first-party data will lead to new and exciting innovations within the marketing industry – and this can only be a good thing.
Going one step further, Henriksson believes that first-party data will take on “do-or-die importance in a post-cookie privacy-focused world” with “authenticated user experiences” and the development of direct relationships now taking centre stage.
However ready the marketing and advertising industries truly are, unquestionably exciting times lie ahead.
